Success of the first green Obligation of a French SME company accompanied by Vigeo’s opinion as an independent third-party expert
Paprec, specialized in recycling, is the first French mid-sized company (SME) to produce a green Obligation (“Green High Yield Bond”) to finance projects that have a positive environmental and social footprint.
The program should allow Paprec to generate, in addition to its recycling activities, “secondary raw materials” which contribute to the circular economy through the preservation of natural resources and economic and local social development. The program is accompanied by Vigeo’s opinion based on its rating method which simultaneously evaluates the company’s level of social responsibility, the nature of its projects, its environmental and social impact and its governance. The review also evaluated, in accordance with Vigeo’s proprietary methods:
- the exhaustiveness and efficiency of Paprec’s engagements on all of the sustainability factors relevant to its activity, including human rights, human resources, protection of the environment, business ethics, governance and societal engagement,
- the material environmental benefits of the recycling projects and a critical evaluation of the ESG factors to be incorporated in the management of projects,
- the completeness and accessibility of the reporting Paprec expects to take into consideration, as well as the level of governance and environmental and social impacts of its projects.
This program will permit Paprec to finance the diversification of its recycling solutions and to develop its organic growth in acquiring entities specializing in waste treatment. Paprec has raised 480 million euros in two parts (295 million euros, with a maturity of 7 years, and a 5.25% interest rate; and 185 million euros, with a maturity of 8 years and a 7.375% interest rate). This fundraising initiative raises positive financial perspectives for mid-sized French companies to copy this growth model and support projects with a high potential for environmental progress. The operation has been oversubscribed four times.